Taxes & Closing Costs

    Property Tax Rate (per $100)

    The Texas property tax rate, expressed as dollars per $100 of taxable appraised value rather than in mills.

    Texas property tax rates are commonly stated as a dollar amount per 100 dollars of taxable value. To find the annual tax, divide the taxable value by 100 and multiply by the rate per 100. Each taxing unit, such as the county, school district, and city, sets its own rate, and the rates combine on one bill.

    Taxable value is the appraised value minus any exemptions, such as the homestead exemption. Apply exemptions first, then apply the combined rate. If an exam question uses mills instead, one mill is one dollar per 1,000 of value.

    On the exam

    Texas rates are per 100 of value: taxable value divided by 100, times the rate. Subtract exemptions before applying the rate.

    Worked example

    Taxable value 210,000 divided by 100 equals 2,100, times a 2.20 rate per 100 equals 4,620 dollars.

    Exam trap

    Do not multiply appraised value by the rate before subtracting exemptions. Taxable value comes first, and the Texas convention is per 100, not mills.

    Tested in

    Real Estate Math (6% of the exam)

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    This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.